Raley’s, union reach deal

Wednesday

Nov 14, 2012 at 12:01 AM

The 9-day-old grocery clerks strike against Raley's and its Nob Hill Foods subsidiary stores ended Tuesday as the supermarket chain and United Food and Commercial Workersunion reached a tentative contract agreement.

Reed Fujii

The 9-day-old grocery clerks strike against Raley's and its Nob Hill Foods subsidiary stores ended Tuesday as the supermarket chain and United Food and Commercial Workersunion reached a tentative contract agreement.

That agreement emerged about 5 a.m. after an intensive overnight negotiating session in San Francisco, where talks had been held since Friday. Leaders of union Locals 8 and 5 said picket lines would come down and about 7,000 workers would immediately return to work for the first time since going on strike Nov. 4.

Leaders also said they would recommend their members ratify Tuesday's settlement, but they had not yet set a date for the vote.

Most details of the proposed contract, the result of 15 months of often bitter bargaining, were not released. But the union said it contained a key point of contention: Raley's agreed to retain and fund a union-managed health care plan and will continue to provide health care benefits to its retired employees.

That same health plan is contained in a contract reached this past summer with Save Mart Supermarkets and in a proposed contract for Safeway workers announced Thursday.

Raley's has stores in Stockton, Manteca, Tracy and Lodi.

"Now, this is an extraordinary accomplishment for our members and our retirees," said Jacques Loveall, president of the Roseville-based UFCW Local 8, in a video posted on YouTube and at the union's website, yourbreadandbutter.com. "We've been able to protect our members in a very, very challenging environment."

Raley's executives, too, expressed satisfaction.

"This is very exciting, because this contract provides us with the cost savings we need to fund our vision and the initiatives to make us more competitive in the 21st century," Raley's President Mike Teel said in a news release. "It will be great to have everyone back working again."

Victor Inzunza, a Stockton resident who works the night stocking crew at the Raley's store on Hammer Lane, agreed with that last sentiment. "We're definitely glad to be getting back to work," he said by telephone.

He also welcomed the news of continued health coverage for employees and retirees. "Those were the two key things we were fighting for," Inzunza said.

Raley's statement noted that the strike was the first in the West Sacramento-based grocer's 77-year history.

The company has said it had been losing money as it dealt with the effects of the recession and rising health care costs, but in particular the influx of nonunion competition - by its count, more than 240 nonunion retailers either opening or adding grocery lines to their stores in recent years.

Those include discount giants Target and Walmart, as well as British-backed Fresh & Easy, Whole Foods and Winco Foods.

"Just go to any corner where Raley's is and you'll see the competition right there," said John Segale, a Raley's spokesman.

The proposed contract will also cover and be submitted for approval by workers at Bel Air, a Raley's subsidiary that had not been affected by the strike.

Union officials said any replacement workers hired during the strike will be dismissed.